Carter’s Inc (CRI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,142,670 | 1,101,240 | 1,188,720 | 1,899,720 | 1,946,020 |
| Total current liabilities | US$ in thousands | 508,816 | 511,862 | 528,949 | 717,231 | 792,532 |
| Current ratio | 2.25 | 2.15 | 2.25 | 2.65 | 2.46 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,142,670K ÷ $508,816K
= 2.25
Based on the provided data, Carter’s Inc has shown a consistent and healthy current ratio over the past five years. The current ratio measures a company's ability to cover its short-term obligations with its current assets, and a ratio above 1 generally indicates good short-term financial health.
Carter’s Inc's current ratio has been above 2 for most of the years, which signifies that the company has more than enough current assets to cover its current liabilities. This indicates a strong liquidity position, suggesting that Carter’s Inc is well-equipped to meet its short-term financial obligations.
The slight fluctuations in the current ratio over the years, such as the increase from 2.46 in 2020 to 2.65 in 2021, followed by a decrease to 2.15 in 2023 and then back up to 2.25 in 2024, may reflect changes in the company's current asset and liability composition. However, overall, the current ratio remains at a healthy level, providing a cushion for Carter’s Inc against any short-term financial difficulties.
Peer comparison
Dec 31, 2024